Notification No. 01/2023 - CT(R): NTA Recognized

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Notification No. 01/2023 - Central Tax (Rate): Seeks to amend notification No. 12/2017- Central Tax (Rate) so as to notify change in GST with regards to services as recommended by GST Council in its 49th meeting held on 18.02.2023.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R. (E). -In exercise of the powers conferred by sub-sections (3) and (4) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendment further to amend the notification of the Government of India, Ministry of Finance (Department of Revenue), No.12/2017-Central Tax (Rate), dated the 28th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 691(E), dated the 28th June, 2017, namely:—

In the said notification, in paragraph 3, in the Explanation, after clause (iv), the following clause shall be inserted, namely: -

“(iva) For removal of doubts, it is clarified that any authority, board or body set up by the Central Government or State Government including National Testing Agency for conduct of entrance examination for admission to educational institutions shall be treated as educational institution for the limited purpose of providing services by way of conduct of entrance examination for admission to educational institutions.”.

2. This notification shall come into force with effect from the 01^st March, 2023.

(Rajeev Ranjan)
Under Secretary

Note: The principal notification was published in the Gazette of India, Extraordinary, vide notification No. 12/2017 - Central Tax (Rate), dated the 28^th June, 2017, vide number G.S.R. 691 (E), dated the 28th June, 2017 and last amended vide notification No. 15/2022 - Central Tax (Rate), dated the 30^th December, 2022 vide number G.S.R. 926(E), dated the 30^th December, 2022.

📚 Frequently Asked Questions (FAQs): Notification No. 01/2023 – Central Tax (Rate)

Q1: What is Notification No. 01/2023 – Central Tax (Rate) about?

Answer:
This notification, issued on 28th February 2023, amends Notification No. 12/2017 – Central Tax (Rate). It clarifies that any authority, board, or body set up by the Central or State Government — including the National Testing Agency (NTA) — is considered an “educational institution” solely for conducting entrance exams for admission to educational institutions. ✅

Q2: What change has been introduced in GST treatment of services by the NTA?

Answer:
With effect from 01 March 2023, the services provided by NTA (and similar government setups) for conducting entrance examinations are treated as services by an educational institution and hence are exempted from GST.
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Q3: Why was this clarification important for GST applicability?

Answer:
There was ambiguity regarding whether NTA and similar bodies were liable to charge GST for their services. This clarification ensures they are not taxed when providing entrance exam services — promoting educational access.

Q4: Which section of the CGST Act empowers this amendment?

Answer:
The amendment is empowered under Sections 9(3), 9(4), 11(1), 15(5), and 148 of the CGST Act, 2017. 📘

Q5: Is the exemption applicable only to the NTA?

Answer:
No, it applies to any authority, board, or body set up by the Central or State Government that conducts entrance exams for educational admissions — not just the NTA.

Q6: What is the effective date of Notification No. 01/2023 – Central Tax (Rate)?

Answer:
The notification came into force on 1st March 2023. 📅

Q7: Does this exemption apply to private organizations conducting exams?

Answer:
No ❌. The exemption is specifically for government-established bodies like the NTA. Private exam-conducting bodies do not qualify under this notification.

Q8: Where can I get expert help for GST exemption or education-related compliance?

Answer:
You can connect with verified GST Professionals and Compliance Experts via www.Finodha.in. For detailed GST compliance, visit: https://finodha.in/gst-compliance/.

Q9: Is this notification an amendment to an existing one?

Answer:
Yes. It amends the original Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017. This update was the latest in a series of amendments, with the previous one being Notification No. 15/2022.

Q10: Who issued Notification No. 01/2023 – Central Tax (Rate)?

Answer:
The Ministry of Finance (Department of Revenue), Government of India, under the authority of the CBIC (Central Board of Indirect Taxes and Customs).

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